Binance is the latest to join the growing list of firms exiting the Canadian market. The company cites the introduction of new regulations by the Canadian Securities Administrators (CSA) as the reason for its decision.
The regulations, introduced on February 22, require exchanges to file new undertakings of preregistration and comply with additional restrictions. Binance had filed a renewed preregistration undertaking, but it tweeted that new guidance linked to stablecoins and investor limitations makes the Canadian market untenable for the exchange at this time, media reports said.
Other exchanges such as OKX, decentralized exchange dYdX, and blockchain fintech Paxos have also left the Canadian market due to the new regulations. Binance has instructed its Canadian consumers to shut their open positions by September 30, 2023, and added that from October 1, 2023, Canadian consumers will be placed into liquidation only mode.
Before its recent decision to withdraw from the Canadian market, Binance had been operating in all Canadian provinces and territories except for Ontario. However, the exchange withdrew from Ontario in March 2022 due to a disagreement with provincial regulators. Binance’s email to its Canadian users indicated that it remains committed to engaging with Canadian regulators to establish a comprehensive regulatory framework.
Fortunately for Canadian cryptocurrency enthusiasts, Kraken is one of the exchanges that has filed the new preregistration undertaking and expressed its commitment to continuing operations in Canada. Additionally, the Canadian Securities Administrators (CSA) has authorized 11 platforms to conduct business with Canadians, which provides some assurance to the Canadian cryptocurrency industry despite recent regulatory changes.
